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HomeBitcoinUS CPI Inflation Comes In At 3.2%, Bitcoin And Ethereum Price To...

US CPI Inflation Comes In At 3.2%, Bitcoin And Ethereum Price To Rally?

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The annual CPI inflation for the month of July comes in a 3.2% against market expectations of 3.3%, according to the U.S. Bureau of Labor Statistics. In addition, the Core CPI inflation comes in at 4.7% against market expectation of 4.8%, with the monthly rate also remaining at 0.2%.

The annual inflation data coming in hotter than last month’s 3% gives room for the US Federal Reserve to remain hawkish. The stock and crypto markets will have to wait a few more months for a pivot.

JP Morgan predicted a CPI inflation of 3.4%. Whereas, other Wall Street giants such as Goldman Sachs, Barclays, HSBC, and UBS estimated 3.2%. BMO, Bloomberg, Citigroup, Credit Suisse, Morgan Stanley, and Visa forecasted inflation to come in line at 3.3%.

The headline inflation falling below 3% could have brought further upside move in the stocks and crypto markets. In fact, the CME FedWatchTool now shows an 86.5% probability of the Fed keeping the Federal target rate steady at the upcoming Federal Open Market Committee (FOMC) meeting in September 2023. The US Dollar Index (DXY) fell 0.63% to 101.78 and expect to continue falling.

Read More: Bitcoin Price Prediction – A Risky Run-Up To Key US CPI Data?

Bitcoin and Ethereum Price to Fall After CPI?

Traders are looking for Bitcoin and Ethereum to surpass key psychological levels of $30k and $2000, respectively. However, crypto prices continue to remain under pressure.

BTC price fell more than 1% in the last 24 hours, with the price currently trading near $29,500. With inflation coming in less than expected a small uptick is expected. Analysts expect BTC price to rise to an earlier expected level of $35k, but volatility can be expected.

Meanwhile, Ethereum price is trading above $1850, down 0.5% in the past 24 hours. Bitcoin and Ethereum trading volume remains low for weeks amid a lack of volatility.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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